- Sales of $1.4 billion, down 7 percent from a year ago
- GAAP earnings per share (EPS) from continuing operations* of $0.30
- Non-GAAP** EPS from continuing operations of $0.47
- Generated $118 million in operating cash flow
- Repurchased $416 million in shares; recently announced 10 percent increase to quarterly cash dividend
- Cost-reduction target increased from $200 million to approximately $300 million by end of 2015
SCHAUMBURG, Ill. — (BUSINESS WIRE) — August 5, 2014 — Motorola Solutions, Inc. (NYSE: MSI) today reported its earnings results for the second quarter of 2014. Click here for a printable news release and financial tables.
Motorola Solutions’ Enterprise business now is reflected in discontinued operations for both the current quarter and prior periods due to its planned divestiture by the end of 2014. All financials cited reflect the company’s ongoing operations, including iDEN, with its new reporting segments: Products and Services.
REVENUE
Sales declined 7 percent to $1.4 billion primarily reflecting lower sales in North America state and local markets as well as in Asia Pacific & the Middle East. Europe & Africa and Latin America sales grew double-digits. Product sales declined 10 percent driven primarily by lower subscriber and systems revenues, while Services declined 1 percent.
SUPPORTING QUOTE
“Second quarter results were in line with our expectations. Additionally, we made significant progress toward simplifying our operations and accelerating our cost reduction efforts,” said Greg Brown, chairman and CEO, Motorola Solutions. “We believe our continued focus on execution, targeted investments and capital return positions us well to grow and create long-term value for our shareholders.”
KEY FINANCIAL RESULTS
| Second Quarter | Change | ||||||||
| 2014 | 2013 | ||||||||
| Motorola Solutions, Inc. | |||||||||
| Sales ($M) | $1,393 | $1,497 | -7% | ||||||
| GAAP | |||||||||
| Operating earnings ($M) | $138 | $203 | -32% | ||||||
| Percent of sales | 9.9% | 13.6% | |||||||
| EPS from continuing operations | $0.30 | $0.81 | -63% | ||||||
| Non-GAAP | |||||||||
| Operating earnings ($M) | $201 | $248 | -19% | ||||||
| Percent of sales | 14.4% | 16.6% | |||||||
| EPS from continuing operations | $0.47 | $0.94 | -50% | ||||||
|
Segments |
|||||||||
| Products | |||||||||
| Sales ($M) | $887 | $986 | -10% | ||||||
| GAAP operating earnings ($M) | $95 | $125 | -24% | ||||||
| Percent of sales | 10.7% | 12.7% | |||||||
| Non-GAAP operating earnings ($M) | $133 | $154 | -14% | ||||||
| Percent of sales | 15.0% | 15.6% | |||||||
| Services | |||||||||
| Sales ($M) | $506 | $511 | -1% | ||||||
| GAAP operating earnings ($M) | $43 | $78 | -45% | ||||||
| Percent of sales | 8.5% | 15.3% | |||||||
| Non-GAAP operating earnings ($M) | $68 | $94 | -28% | ||||||
| Percent of sales | 13.4% | 18.4% | |||||||
